BUY-TO-LET DEAL OF THE WEEK: 2 bedroom house in Chichester, £279,950, 4.2% yield

 

Summary:

2 bedroom house in Chichester

Listed for sale on 23/02/18 @ £279,950

Rent = £975pcm

Last sold in November 2015 for £250,000 (+12% in 2.5 years)

Yield = 4.2%

This two-bedroom house close to Chichester's city centre could make an ideal buy-to-let rental property for an astute landlord.

It is in good condition with a modern bathroom and kitchen, double glazing, gas central heating and a neutral, clean décor and carpets. This means it's ready to rent from day one, which will maximise the property's rental return, as opposed to having it empty whilst refurbishment works commence.

At £279,950 it's not the cheapest two-bedroom house in Chichester but is below average (£310,000 for a two-bedroom house in Chichester). You could actually buy a three-bedroom house in Chichester for the same price. It's central location and good condition though makes this a reasonable proposition, and I've written many times before about the lack of two-bedroom houses in Chichester, the ease in which they let, and the increase in their value over the past few years.

At 965 square feet it is actually rather large as a two-bedroom house - it's actually bigger than quite a few three-bedroom houses. The reason for this is quite simple - it used to be a three bedroom house with a downstairs bathroom. My slight gripe with the house is that the bathroom was moved upstairs (which is sensible enough) but to a room measuring 10'1 x 9'1 - meaning a double bedroom has been lost! Far more sensible would have been using the large front bedroom, which could have been split into a single bedroom and a reasonable bathroom, thus maintaining the property as a three bedroom house.

It wouldn't make sense to revert this property to a three bedroom house (which would then rent for around £1,050pcm) but unfortunately, whilst it maintains the same space of 'what might have been', the fact it is a two-bedroom house chops that rental figure down to £975pcm. Achieving that rent based on paying the full asking price would result in a rental yield of 4.2% - which is about average for Chichester's freehold properties.

It shows decent promise for future capital growth, having increased in value by 12% since it was last sold in November 2015 for £250,000 and by 84% when it was sold for £152,000 in September 2002. It's interesting looking back at the old sale prices - I'll bet the person who bought it for just £58,000 in December 1996 was quite pleased with themselves when they sold it just 14 months later for a profit of £16,000....yet the £200,000 gain in the 20 years since may suggest they sold too soon!

It is on the market with Bell & Blake and full details can be found on Rightmove via the following link:

www.rightmove.co.uk/property-for-sale/property-53076606.html

____________________________ If your are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property. E-mail me on clive@crjlettings.co.uk or call 01243 624 599. Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles: Follow The Buy-To-Let Property Investment Market in Chichester Chichester Property Market LinkedIn Page for Clive Janes CRJ Letting Agents Chichester Facebook Page CRJ Letting Agents Chichester Twitter Page Chichester Investment Property Management Specialist CRJ Letting Agents Website c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP ____________________________